- We’re not thinking about pausing
- Are we done? No
- We need to be confident that core inflation is heading down
- We are not satisfied with the inflation outlook
- I don’t want to comment about the terminal rate. We will know when we get there
- Unless there is a material change, we will hike in July
- Very broad consensus behind decision
- Under current parameters, 2.2% inflation in 2025 isn’t satisfactory
- The indirect cost of energy price rises will continue to fade
- We decided to let APP move into a run-off mode
EUR/USD is near the post-statement highs but there’s an element of USD-weakness at work as well. Last at 1.0873.
Update: The press conference is over. I don’t know if we learned much here but a hike in July is only priced at 68% and that sounds too low to me. I’d comfortably pencil in two more hikes.